CRA working on Millville grocery

By ZACK McDONALD / The News Herald

Published: Saturday, December 8, 2012 at 06:16 PM.

The conditional agreement requires Reeves to close on the real estate, which he has, and have in place either property insurance or a builder’s risk policy at the time of construction. Additionally, in the event a grocery store or other job-creating enterprise is not open for business on the property within 18 months following the CRA grant payment, the CRA grant funds must be promptly repaid to the city with the city retaining the right to place a lien on the property to secure payment.

“He has to perform the work, show us photos and the paid invoices before we can reimburse him the 50 percent,” Whitson said.

‘It’s frustrating’

The CRA has made an effort to assist in the bank search, according to Whitson.

“We’ve tried to help find willing bankers,” Whitson said. “Financing is a big part of redevelopment. It’s frustrating because the U.S. bailed out these banks and now they’re sitting on this money.”

The second phase would include repairs to the building’s façade and is contingent on whether the first phase goes through.

PANAMA CITY — Residents of Millville can expect a new community grocery — provided the owner can find “willing bankers,” according to Community Redevelopment Agency officials.

“We’re trying to get it (Millville) to be an attractive place for investment again,” said William Whitson, Panama City CRA director. “The investment left because it began to look run down. We are trying to get the image back, because it is a great city with a great history.”

The Panama City CRA unanimously approved reimbursement funding for the first phase in a renovation project of a “Millville community grocery store” at 2401 E. Fifth St., which most recently housed Via Foods Supermarket.

CRAs are funded by using tax increment financing (TIF) and other available funds to eliminate slum and blight. By returning formerly vacant properties to the tax rolls, the city creates new sources of revenue within the TIF district, generating the funds needed to make necessary improvements without raising taxes in the community.

“This will be the return to Millville’s true community grocery store where they have access to fresh produce and such,” said Tim Whaler, Millville CRA program manager. “Citizens of the community are really excited and happy to have their grocery store back.”

The first phase includes a contract quoted at $51,995 with C.W. Roberts Contracting Inc. for parking lot resurfacing and a contract with Tadlock Roofing and Solar for $42,660 for roof replacement. Panama City’s CRA has agreed to provide a 50 percent, or $47,327.50, reimbursement grant, which means the new owner of the building, John Reeves of Port St. Joe, must attain the project total of $94,655 and fulfill requirements before a check for the grant is cut.

“Cosmetically it looks rough,” Reeves said of the current state of the building and lot. “But you have to have a vision before you can create.”

Neighborhood love

The vision is of a ’50s- and ’60s-themed grocer, offering some of the services available in those times such as bag carriers for the elderly and delivery for qualifying people within a mile.

“When we get the doors open, it will be well received,” Reeves said. “The neighborhood loves that store. Every day I have one or two people come by asking, ‘when are you going to open?’ ”

Reeves said he is currently working inside the building doing what he can while waiting for a response from a bank.

“It is right now at a standstill,” Reeves said. “Banks typically don’t like grocery stores.”

Construction is expected to begin around February. When the store opens, Reeves expects to create around eight full-time jobs and four part-time jobs.

The conditional agreement requires Reeves to close on the real estate, which he has, and have in place either property insurance or a builder’s risk policy at the time of construction. Additionally, in the event a grocery store or other job-creating enterprise is not open for business on the property within 18 months following the CRA grant payment, the CRA grant funds must be promptly repaid to the city with the city retaining the right to place a lien on the property to secure payment.

“He has to perform the work, show us photos and the paid invoices before we can reimburse him the 50 percent,” Whitson said.

‘It’s frustrating’

The CRA has made an effort to assist in the bank search, according to Whitson.

“We’ve tried to help find willing bankers,” Whitson said. “Financing is a big part of redevelopment. It’s frustrating because the U.S. bailed out these banks and now they’re sitting on this money.”

The second phase would include repairs to the building’s façade and is contingent on whether the first phase goes through.

The grant is a sizeable portion of Millville’s annual CRA budget. Panama City has allocated $70,000 for redevelopment in the area. The $47,327.50 for the project would allow only about $23,000 for the remainder of 2013, but. CRA commissioners agreed the project would be an important improvement to the area.

“It’s going to be another tight year,” Whaler said, “so we are looking at several projects we can prioritize.”

The projects taking front seat for the CRA would be geared toward structurally revitalizing the community, according to Whaler.

“We’re going to look at roof grants that make the community stronger and more healthy in order to bring the community back one step at a time,” Whaler said. “These small victories add up.”